How Should I Take Ownership of the Property I’m Buying?

When buying real estate, how you take ownership—also called vesting title—has serious legal, financial, and tax implications. It affects who can sign documents, how property is transferred, how it's taxed, and what happens if an owner passes away.

The California Land Title Association (CLTA) recommends that buyers give careful thought to title vesting, especially in cases with multiple owners. It's always wise to consult a real estate attorney or tax advisor.

Common Ways to Hold Title

Sole Ownership

Property owned by one person or legal entity.

• Single Man/Woman: Never married
• Unmarried Man/Woman: Divorced or widowed
• Married as Sole & Separate: Requires spouse to formally relinquish interest

Example: Alex Buyer, a married man, as his sole and separate property

Co-Ownership

Ownership shared by two or more individuals.

• Community Property: Ownership shared equally by a married couple. Either spouse can transfer their half via will.Example: Alex and Jamie Buyer, husband and wife, as community property
• Joint Tenancy: Equal ownership with right of survivorship—when one owner dies, their share goes to the surviving owner(s).Example: Alex and Jamie Buyer, husband and wife, as joint tenants
• Tenancy in Common: Fractional ownership that can be unequal. Each party can sell or will their portion.Example: Alex Buyer (¾ interest) and Sam Purchaser (¼ interest), as tenants in common

Entity or Trust Ownership

• Corporation – Legal entity with separate identity from its shareholders
• Partnership – Co-ownership for profit under a partnership agreement
• Limited Liability Company (LLC) – Combines features of a corporation and partnership
• Trust – Property held by a trustee for the benefit of others under a trust agreement

Note: These require supporting legal documents like operating agreements or trust certificates.

Final Thought

How you hold title matters. It can affect inheritance, taxes, liability, and control. Before you close, talk with a legal or tax professional to choose the best option for your situation.